Finance
UK Awards $510 Million to Tata's Agratas for Somerset Ev Battery Gigafactory
Published by Global Banking & Finance Review®
Posted on April 9, 2026
2 min readLast updated: April 9, 2026
Add as preferred source on Google
Quick Summary
The UK government’s Advanced Propulsion Centre (APC) has awarded Oj£380 million (approx. $510 million) in funding to Agratas — Tata Group’s battery arm — boosting its planned 40 GWh Somerset gigafactory as part of a broader £470 million grant to accelerate EV battery production and supply chains.
UK Awards $510 Million to Tata's Agratas for Somerset EV Battery Plant
Details of the UK Government's Funding Announcement
April 9 (Reuters) - Britain has awarded about 380 million pounds ($509.54 million) in funding to Agratas, the battery arm of India's Tata Group, to support the transition to zero-emission vehicles, the government-backed Advanced Propulsion Centre (APC) said on Thursday.
Overview of the Funding Package
Here are some details on the announcement from the UK's Advanced Propulsion Centre (APC), with the funding forming part of a broader 470 million pound grant:
-
Investment and Grant Allocation
The investment forms part of a broader 470 million pound government grant package and will support Agratas' planned gigafactory in Somerset, enhancing domestic electric vehicle (EV) battery production and strengthening supply chains for zero-emission transport, the APC said.
-
Proposal and Government Involvement
The grant to Agratas was proposed last year by the Department for Business and Trade.
-
About Agratas and the Somerset Gigafactory
Company Background
Agratas, established to support Tata Motors and Jaguar Land Rover, is building what is set to be Britain's largest electric vehicle battery plant in Somerset, with expected capacity of about 40 gigawatt-hours.
-
Economic Impact and Industry Support
Ministerial Statement
"By funding our automotive sector, we are creating the right conditions for increased investment, economic growth, and jobs across the country," Minister for Industry Chris McDonald said in a statement.
-
Future Supply and Job Creation
The Somerset plant is expected to supply Jaguar Land Rover and could in future also supply other carmakers, helping support thousands of jobs.
-
Other Grant Recipients
The remaining government grants were allocated to winners across major collaboration, research and development, and investment programmes run by the government, the APC said.
-
Role of the Advanced Propulsion Centre
APC works with the government and industry to support investment in zero-emission vehicle and battery manufacturing in Britain.
Exchange Rate Information
($1 = 0.7458 pounds)
Reporting Credits
(Reporting by Nithyashree R B and Pushkala Aripaka in Bengaluru; Editing by Tasim Zahid)
Key Takeaways
- •Agratas will build Britain’s largest EV battery gigafactory—a 40 GWh facility in Somerset—backed by a broader £470 million grant package from the APC.
- •The £380 million grant, proposed by the Department for Business and Trade, is part of the DRIVE35/ATF scheme to close capability gaps in UK battery manufacturing.
- •The gigafactory represents a £4 billion private investment, expected to create around 4,000 jobs directly, become operational (Phase 1) by late‑2027, and supply Jaguar Land Rover initially, with potential to support wider OEMs.
Frequently Asked Questions about UK awards $510 million to Tata's Agratas for Somerset EV battery gigafactory
1How much funding did Tata's Agratas receive for the Somerset EV battery gigafactory?
Agratas was awarded about 380 million pounds ($510 million) in UK government funding for the Somerset electric vehicle battery plant.
2What is the planned capacity of the Agratas gigafactory in Somerset?
The Agratas gigafactory in Somerset is expected to have a capacity of about 40 gigawatt-hours.
3Which automakers will the new Somerset gigafactory supply?
The Somerset plant is expected to supply Jaguar Land Rover and could also supply other carmakers in the future.
4What is the purpose of the UK's investment in Agratas and EV battery production?
The investment aims to enhance domestic EV battery production, strengthen supply chains for zero-emission transport, and support economic growth and jobs.
5Who administers the grants for zero-emission vehicle and battery manufacturing in the UK?
The grants are administered by the Advanced Propulsion Centre (APC) in collaboration with the UK government.
